Correlation Between Grande Portage and Black Tusk
Can any of the company-specific risk be diversified away by investing in both Grande Portage and Black Tusk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grande Portage and Black Tusk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Portage Resources and Black Tusk Resources, you can compare the effects of market volatilities on Grande Portage and Black Tusk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grande Portage with a short position of Black Tusk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Black Tusk.
Diversification Opportunities for Grande Portage and Black Tusk
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grande and Black is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Black Tusk Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Tusk Resources and Grande Portage is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grande Portage Resources are associated (or correlated) with Black Tusk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Tusk Resources has no effect on the direction of Grande Portage i.e., Grande Portage and Black Tusk go up and down completely randomly.
Pair Corralation between Grande Portage and Black Tusk
Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the Black Tusk. But the otc stock apears to be less risky and, when comparing its historical volatility, Grande Portage Resources is 14.63 times less risky than Black Tusk. The otc stock trades about -0.01 of its potential returns per unit of risk. The Black Tusk Resources is currently generating about 0.82 of returns per unit of risk over similar time horizon. If you would invest 0.86 in Black Tusk Resources on August 28, 2024 and sell it today you would earn a total of 6.14 from holding Black Tusk Resources or generate 713.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.3% |
| Values | Daily Returns |
Grande Portage Resources vs. Black Tusk Resources
Performance |
| Timeline |
| Grande Portage Resources |
| Black Tusk Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Grande Portage and Black Tusk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Portage and Black Tusk
The main advantage of trading using opposite Grande Portage and Black Tusk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage position performs unexpectedly, Black Tusk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Black Tusk will offset losses from the drop in Black Tusk's long position.| Grande Portage vs. Ascendant Resources | Grande Portage vs. Cantex Mine Development | Grande Portage vs. Amarc Resources | Grande Portage vs. Sterling Metals Corp |
| Black Tusk vs. Palamina Corp | Black Tusk vs. Gold Springs Resource | Black Tusk vs. BTU Metals Corp | Black Tusk vs. Norsemont Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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